News

Europe Roundup: Euro slips below parity, European shares slide, Gold retreats, Oil falls as China widens COVID curbs-October 28th,2022

Posted at 28 October 2022 / Categories Market Roundups


Market Roundup

•French Sep Consumer Spending (MoM) 1.2%, 1.1%forecast, -0.9% previous

•French GDP (YoY) 1.0% , 1.0%    forecast, 4.2% previous

•Sweden GDP (QoQ) (Q3) 0.7%,               -0.1% forecast,  0.9% previous

•Sweden GDP (YoY) (Q3)2.6%, 2.4% forecast, 3.8% previous

•French GDP (QoQ) (Q3) 0.2%,  0.2% forecast,0.5% previous

•French CPI (MoM) 1.0%, 0.5% forecast, -0.6% previous

• French CPI (YoY) 6.2%, 5.7% forecast, 5.6% previous

•French HICP (MoM) 1.3%,0.6% forecast, -0.5% previous

•German GDP (QoQ) (Q3) 0.3%, -0.2%   forecast,0.1% previous

•German GDP (YoY) (Q3) 1.1%, 0.7% forecast, 1.8% previous

•EU  Oct Industrial Sentiment -1.2,  -1.8 forecast, -0.4 previous

•EU  Oct Services Sentiment  1.8, 3.2 forecast, 4.9 previous

•EU  Oct Consumer Confidence -27.6,-27.6 forecast, -27.6 previous

• Italian Oct CPI (YoY)  11.9%,9.6% forecast, 8.9% previous

• Italian Oct CPI (MoM)  3.5%,1.2% forecast, 0.3% previous

Looking Ahead - Economic Data (GMT )

• 12:30 US Employment Cost Index (QoQ) (Q3)  1.2% forecast, 1.3% previous

• 12:30 US Sep Personal Income (MoM)  0.3% forecast, 0.3% previous

• 12:30 US Sep Personal Spending (MoM)  0.4% forecast, 0.4% previous

• 12:30  US Sep PCE price index (MoM)  0.3% previous

• 12:30 US Sep PCE Price index (YoY)   6.2% previous

• 12:30 US Sep Core PCE Price Index (YoY)  5.2% forecast, 4.9% previous

•12:30 US Sep Core PCE Price Index (MoM)  0.5% forecast, 0.6% previous

•12:30   Canada Aug GDP (MoM)  0.1%   forecast, 0.1% previous

•14:00   US Sep Pending Home Sales Index   88.4 previous

•14:00 US  Oct Michigan Consumer Sentiment  59.8 forecast, 59.8 previous  

•14:00 US  Oct Michigan Current Conditions 65.3 forecast, 65.3 previous  

•14:00 US  Oct   Michigan Consumer Expectations  56.2 previous  

•14:00 US Oct Michigan 5-Year Inflation Expectations  2.90% previous  

•14:00 US Sep  Pending Home Sales (MoM) -5.0% forecast, -2.0% previous  

•15:00 Canada Aug Budget Balance  -3.87B previous  

•15:00 Canada Aug Budget Balance (YoY)  6.33B previous  

•17:00 U.S. Baker Hughes Oil Rig Count  612 previous  

•17:00 U.S. Baker Hughes Total Rig Count 771 previous  

Looking Ahead - Events, Other Releases (GMT)

•No significant  event

Fxbeat

EUR/USD The euro was little changed against the dollar   on Friday as investors assessed the path for monetary policy tightening amid slowing economic growth. Remarks from the ECB policy meeting on Thursday led investors to forecast a slowdown of future rate hikes as the central bank reiterated its commitment to reinvestments and omitted to start talking about quantitative tightening.  The euro was last 0.05% lower at $0.9945, following a more than 1% slide overnight, after the ECB raised rates by 75 basis points .Immediate resistance can be seen at 1.0000(Psychological level), an upside break can trigger rise towards 1.0087(38.2%fib).On the downside, immediate support is seen at 0.9918 (23.6%fib), a break below could take the pair towards 0.9881 (11DMA).

GBP/USD: The British pound slid against the dollar on Friday but was still set for its third consecutive weekly gain, its longest positive streak since February. After hitting a record low against the dollar of $1.0327 in September, the pound has staged a recovery after the formation of a new British government and as the dollar has softened on expectations that the Federal Reserve might begin to slow the pace of monetary tightening.However, that recovery stalled on Friday and by 0933 GMT the pound was down 0.3% against the dollar to $1.15295. For the week, the pound was still up 1.9%, its biggest weekly jump since Sept. 30. Immediate resistance can be seen at 1.1646 (38.2%fib), an upside break can trigger rise towards 1.1739 (Higher BB).On the downside, immediate support is seen at 1.1430(50%fib), a break below could take the pair towards 1.1367(11DMA).

 USD/CHF: The dollar strengthened against the Swiss franc on Friday as looked to next week's Federal Reserve meeting for clues on whether a pivot on the pace of rate hikes is on the table. Investor focus will shift to the Federal Reserve policy meeting next week. The Fed is seen slowing its aggressive rate-hike pace in December on evidence that the economic slowdown that the central bank is trying to engineer is getting underway. At ( GMT 11:25),greenback gained 0.38% versus the Swiss franc to 0.9897.Immediate resistance can be seen at 0.9966 (11DMA), an upside break can trigger rise towards 1.0012(23.6%fib).On the downside, immediate support is seen at 0.9893 (38.2%fib), a break below could take the pair towards 0.9851 (Oct 27th low).

USD/JPY: The dollar strengthened against the yen on Friday as the yen weakened as the Bank of Japan stuck to its dovish stance. The Bank of Japan kept ultra-low interest rates on Friday and maintained its dovish guidance, cementing its status as an outlier among global central banks tightening monetary policy, as recession fears dampen prospects for a solid recovery.The central bank also announced plans to increase the frequency of its bond buying next month, doubling down on efforts to defend its ultra-loose monetary policy. As widely expected, the BOJ left unchanged its -0.1% target for short-term interest rates and a pledge to guide the 10-year bond yield around 0% under its yield curve control (YCC) policy.Strong resistance can be seen at 147.77 (23.6%fib), an upside break can trigger rise towards 148.41 (11DMA).On the downside, immediate support is seen at 146.12 (Daily low), a break below could take the pair towards 145.45(38.2%fib).

Equities Recap

European stocks fell on Friday as investors digested a deluge of earnings and economic reports.

At (GMT 12:20),UK's benchmark FTSE 100 was last trading down at 0.40 percent, Germany's Dax was down by 0.49 percent, France’s CAC was trading down by 0.12  percent.

Commodities Recap

Gold fell 1% on Friday as the dollar rose, with zero-yield bullion giving up gains from bets for a slowdown in monetary tightening later in the year as immediate focus turned to an impending rate hike next week.

Spot gold was down 0.9% at $1,648.46 per ounce by 1008 GMT, while U.S. gold futures dropped 0.8% to $1,652.10.

Oil prices fell on Friday after top crude importer China widened its COVID-19 curbs, though benchmarks were poised for a weekly gain on supply concerns and surprisingly positive economic data.

Brent crude futures dropped 50 cents, or 0.5%, to $96.46 a barrel by 1047 GMT, having climbed by 1.3% in the previous session. U.S. West Texas Intermediate (WTI) crude futures were down 78 cents, or 0.9%, at $88.30.


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